AXA XL launched a new cyber insurance endorsement specifically designed to meet the cybersecurity needs of U.S. construction firms. This innovative endorsement offers enhanced coverage that aligns with the industry’s increasing use of digital tools like 3D models, AI, IoT devices, and supply chain management software—technologies that expose construction companies to unique cyber vulnerabilities.
Michelle Chia, Chief Underwriting Officer for Cyber in the Americas at AXA XL, highlighted that like construction, like any industry, faces distinct cybersecurity challenges, and that necessitates cyber insurance. “The construction industry’s digital adoption raises its exposure to cyber risks,” said Chia. “We collaborated with our construction underwriting team to create an endorsement that addresses the specific cyber concerns of our construction clients.”
Key Features
- Missed Bid Reimbursement: Coverage for income loss when cyber incidents prevent bid submission.
- Contingent Bodily and Property Damage: Protection for third-party bodily injury or property damage claims resulting from a cybersecurity breach.
- Expanded Network Definition: Includes construction-specific software like Building Information Modeling (BIM) for coverage against data breaches and system failures.
- Downstream Contractual Penalty Coverage: Covers losses from contractual penalties due to project delays caused by incidents.
- Drone Privacy Coverage: Addresses privacy violations related to the use of drones in construction projects.
Each cyber insurance feature addresses critical cyber risks specific to the construction industry, providing tailored protection to help safeguard contractors’ operations and profitability. “Contractors operate on very tight profit margins,” said Greg Chambers, Cyber Underwriting Manager. “Having the right cyber insurance policy, tailored to their specific exposures, protects profits from the financial consequences of cyber incidents.”
Source: AXA XL introduces new endorsement in the U.S. tailored to contractors’ cyber risks.
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